Home » China’s central bank officials: Continue to ease constraints on bank credit supply to guide financial institutions to vigorously expand credit | Reuters

China’s central bank officials: Continue to ease constraints on bank credit supply to guide financial institutions to vigorously expand credit | Reuters

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BEIJING, January 27 – Sun Guofeng, director of the Monetary Policy Department of the People’s Bank of China, wrote in an article that it will improve the money supply control mechanism, continue to ease the three constraints of bank credit supply liquidity, capital and interest rates, cultivate and stimulate credit demand in the real economy, and guide the Financial institutions vigorously expanded credit supply; comprehensively used a variety of monetary policy tools to provide liquidity in a timely and appropriate manner, smoothing short-term fluctuations in liquidity in a timely manner, and promoting the stable operation of money market interest rates.

China Finance, a magazine under the central bank, published its signed article here on Thursday, adding that this year’s prudent monetary policy will be flexible and appropriate, with greater cross-cycle adjustment, more proactive, and more aggressive; The economic downturn and the contraction of the total credit volume resonate, and it cannot be “flooded” by a sharp rise.

The article also stated that financial institutions should be guided to vigorously expand credit supply and enhance the stability of total credit growth; comprehensive measures should be implemented to guide financial institutions to increase credit supply to areas with slow credit growth; Great credit support for agriculture, rural areas and small and micro enterprises.

“It will give full play to the effectiveness of the LPR reform, give full play to the role of the interest rate self-discipline mechanism, standardize the competition order in the deposit market, stabilize the cost of bank liabilities, and guide the decline of corporate loan interest rates,” the article said.

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Sun Guofeng also said that the RMB exchange rate will be kept basically stable at a reasonable and balanced level. There are many factors affecting the exchange rate, the uncertainty of the exchange rate is inevitable, and two-way fluctuations are the norm.

“Maintaining the basic stability of the RMB exchange rate at a reasonable equilibrium level is the goal. The exchange rate may deviate from the equilibrium level in the short term, but in the medium and long term, market factors and policy factors will correct the exchange rate deviation,” the article said.

Liu Guoqiang, deputy governor of the People’s Bank of China, said last Tuesday that the current economy is facing triple pressures. Before the downward pressure on the economy is fundamentally relieved, policies that are not conducive to stability will not be introduced, and policies that are conducive to stability will be introduced; the monetary policy toolbox must be opened again. If it is larger, keep the total amount stable and avoid “credit collapse”. (Finish)

Published by Huang Bin; Reviewed by Lin Gaoli

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